One of Europe’s biggest banks is set to emerge in Italy, following the announcement that Banca Intesa and the San Paolo bank have agreed to merge. The combined strength of the two would make the new entity the biggest player in Italy and boost it into the European top ten.
Shares in both banks have been rising in anticipation of the possible merger, which will give the combined entity a value of some 65 billion euros. The deal will have to be approved by Italy’s anti-trust authorities. As Intesa and San Paolo’s business is predominately within Italy an adjudication from EU authorities in Brussels will not be necessary.